"Box-ticking" regulators risking another crisis, warns report

Rozi Jones, Financial Reporter

Britain is "sleepwalking into another financial crisis" unless the culture of financial regulators is changed, according to a new report.

The research by Cass Business School for New City Agenda warns that "crucial change following the 2008 economic crash is already being watered down".

It believes that the PRA and Bank of England need to go much further to improve transparency and reduce group think, but admitted that there have been significant efforts to improve by both organisations.

However it believes that a "deep seated culture of box-ticking" remains, citing the 13,000 pages of rules, guidance and supervisory statements published by the FCA and PRA that are "both bureaucratic and ineffective".

The report's main concern is that regulators are forgetting the lessons of the crisis, explaining: "The FCA scrapped its review of bank culture and is failing to make effective use of its new powers. The CEO of the FCA was removed in what was widely perceived to be a political sacking orchestrated by the Treasury. Read more